- Pharmaceutical services business Trxade Group recently reported its third quarter financials, showing a new record for revenues amid continued growth in the company’s business-to-consumer operation and services to independent pharmacies
- The company’s revenue growth amounted to a 173 percent year-over-year increase for the quarter
- Trxade Group’s quarterly report also showcased growing gross profits (with a decreasing gross margin), shareholder equity and operating income
- The company offers a web-based platform that maintains market intelligence on over 20,000 medications and provides pricing and supply alerts to members to help them secure the best possible prices
- Subscription in Trxade Group’s platform continued to grow during the quarter, adding 431 independent pharmacies, which amounts to a nine percent increase over the prior quarter and a 54 percent increase over the prior year
Third quarter financial results reported recently show Trxade Group Inc. (OTCQB: TRXD) is continuing to maintain a profitable integrated pharmacy services operation while working to redefine the health care industry for the betterment of small independent pharmacists nationwide.
Trxade Group’s acquisition of Community Specialty Pharmacy, LLC last year continues to drive the company’s revenue benchmarks, delivering sales that lifted the company to record revenues of $2.3 million for the quarter and nine-month year-to-date revenues of $5.7 million, which amount to increases of 173 percent and 126 percent over previous year figures, respectively, according to the company’s news release (http://ibn.fm/52imL).
Gross profits for the third quarter rose in tandem with the revenues, increasing from $845,126 last year to $1.3 million this year. For the year, through the end of September, gross profit was $3.6 million with a gross margin of 63 percent, improving from $2.5 million and 99.5 percent a year earlier.
According to the company, the improvement reflects “a sales mix with greater revenue from Specialty pharmaceutical sales, which carries a higher cost of sales, reflecting the lower margin, than the Company’s other revenue sources.”
In the process, shareholder equity increased to $3.9 million and the company’s debt was reduced, showing the strength of Trxade’s financial controls and operational plan. Operating income also increased by 94 percent, marking the seventh quarter in a row that the company has had positive operating income.
“During the third quarter of 2019, we made excellent progress in our core proprietary B2B trading platform www.Trxade.com, which enables independent pharmacies to purchase drugs at discount prices compared to their primaries, enabling us to experience top and bottom line growth,” Chairman and CEO Suren Ajjarapu stated in a news release. “Additionally, we are investing in core infrastructure for our B-to-C (Community Specialty Pharmacy) business in our wholesale, e-commerce and delivery capabilities as increasing pharmaceutical prices drive independent pharmacies, payors and consumers to be more aggressive in sourcing medication.”
The company is currently preparing to begin the process of upgrading to regular Nasdaq listing.
The Community Specialty Pharmacy (or ComspRX) business’s online extension obtained certification as a legitimate and reputable pharmaceutical operation by LegitScript, an independent third-party compliance organization utilized by Google, Facebook, Visa and Mastercard to vet drug advertisers on their platforms. ComspRX holds 15 state licenses, having been certified by non-profit organization Accreditation Commission for Health Care (ACHC).
The Florida-based Trxade Group pioneered the supplier-to-pharmacy trading platform. The platform helps independent pharmacies avoid the difficulties that come with losing reimbursement costs and helps them identify the most competitive prices available for preferred prescription drugs. Pharmacy subscriptions to the platform have grown steadily, adding 431 new independent pharmacies during the third quarter – a nine percent increase from the prior quarter and a 54 percent increase from a year earlier.
For more information, visit the company’s website at www.TrxadeGroup.com
NOTE TO INVESTORS: The latest news and updates relating to TRXD are available in the company’s newsroom at http://ibn.fm/TRXD
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